US President Donald Trump made important announcements regarding new tariffs on China. He said that the tariffs on Chinese imports will be “approximately 155%” as of November 1st.
Trump said the move was aimed at protecting the US economy, arguing that high tariffs were “unsustainable” for the Chinese economy.
The price of Bitcoin, which climbed to $114,000 during the day, dropped to $110,000 after these statements.
He also stated that he would meet with Democratic leaders after the government reopens.
In previous remarks, Trump, speaking at the White House during a meeting with Australian Prime Minister Anthony Albanese, announced plans to meet with Chinese President Xi Jinping later this month in South Korea or during the Asia-Pacific Economic Cooperation (APEC) summit. “We’re going to have a really fair and great trade deal with China,” he said. “It’s going to be great for both of our countries and for the world.”
In his subsequent statements, he added that a meeting with Xi might not take place.
Trump’s comments come on the heels of a multibillion-dollar deal between Washington and Canberra on rare earths, aimed at reducing China’s dominance of the minerals’ global supply chain.
Experts say Trump’s statements indicate his intention to continue negotiations rather than escalate the trade war. “Both the US and China are willing to reach an agreement, but neither side is willing to make major concessions. Therefore, a comprehensive trade agreement is not expected anytime soon, at least not in 2025,” said Zhuang Bo, a global macro strategist at Loomis Sayles Investment Asia.
*This is not investment advice.